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Hyperliquid

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Hyperliquid
Hyperliquid
Image: official site logo (hyperliquid.xyz)
typeperpetuals exchange, own layer 1
launched2023 (closed alpha February 2023)
tokenHYPE (genesis November 29, 2024)
foundersJeff Yan, iliensinc
websitehyperliquid.xyz

Hyperliquid is a decentralized perpetual futures exchange on its own layer 1 blockchain, whose HYPE token and aggressive fee funded buybacks made it the reference point for every revenue debate on Crypto Twitter.

Contents
  1. 1 Function
  2. 2 HYPE
  3. 3 The JELLY squeeze
  4. 4 Use in the trenches
  5. 5 The US onshore push
  6. 6 References

Function

Hyperliquid is a decentralized exchange for perpetual futures that runs on a purpose built layer 1 blockchain, keeping a full central limit order book, matching engine, and settlement onchain at speeds comparable to a centralized exchange. It was founded by Jeff Yan, a Harvard mathematics and computer science graduate and former Hudson River Trading quant, with a pseudonymous cofounder known as iliensinc. The team, reported at around 11 people, took no venture funding. The chain has two layers: HyperCore, which runs the exchange itself, and HyperEVM, an EVM compatible smart contract environment opened in February 2025. HLP, the Hyperliquidity Provider vault, is a community deposit vault that market makes on the exchange and absorbs liquidated positions, sharing its profit and loss with depositors.

HYPE

The HYPE token launched on November 29, 2024 with one of the largest airdrops in crypto history: about 310 million tokens, 31 percent of supply, went to past users, with nothing allocated to private investors or market makers. Value accrual runs through the Assistance Fund, which uses roughly 97 percent of protocol trading fees to buy HYPE on the open market. By May 2026 the fund had spent over 1.3 billion dollars and held about 14 percent of circulating supply. Hyperliquid generated roughly 857 million dollars in fees in 2025 and ran near 1.3 billion dollars annualized by mid 2026. HYPE peaked at 59.33 dollars in September 2025, then printed a new record near 77 dollars on June 16, 2026, a rare all time high in an otherwise bearish year.

The JELLY squeeze

On March 26, 2025 a trader weaponized the memecoin Jelly My Jelly against the exchange, abandoning a large short that HLP was forced to inherit while allied wallets pumped the spot price, putting the vault into an unrealized loss around 13.5 million dollars. Validators voted to delist the JELLYJELLY perpetual and force settled it at 0.0095 dollars, converting the loss into a small profit and refunding users except flagged addresses. The episode remains the standard case study in both the resilience and the centralization critiques of the platform.

Use in the trenches

Hyperliquid is where the trenches go to short or leverage the same tickers they trade on Solana, and terminals such as Axiom embed its perps directly. In July 2026 Ansem used it as the anchor of a viral thesis that buybacks do not drive valuations, noting Hyperliquid earned about 800 million dollars annualized against 440 million for pump.fun, yet HYPE traded at a 65 billion dollar FDV while PUMP sat near 1.4 billion, attributing the gap to a trust premium. As of August 2026 Hyperliquid remains the dominant onchain perps venue, with US ETF filings around HYPE under discussion.

The US onshore push

On August 19, 2026, at a White House crypto event, President Donald Trump said US regulators are working to bring Hyperliquid into the United States: "I understand that Mike is also working to bring Hyperliquid into the United States in a fully compliant and legal fashion. Working very hard on that," a reference CoinDesk identified as CFTC Chair Michael Selig. Bloomberg framed the comments as the clearest signal yet that the White House wants to pull the industry's offshore market infrastructure onshore; Hyperliquid has never been legally available to US retail traders. HYPE jumped 11 percent on the remarks, trading above 68 dollars during the conference with coverage citing moves toward record highs near 70 dollars, and shares of Hyperliquid Strategies, the Nasdaq listed HYPE treasury company, surged about 30 percent before the close. CNBC reported a "call buying bonanza" around the comments including what it called eyebrow raising trades opened around the timing of the remarks. Trump gave no launch details, and no CFTC approval existed as of the statement; one CT account captured the community reaction: "Remember those days while people were saying 'imagine Trump mentions Hyperliquid.' Here we are."

References

See also
  • Jito Jito is the dominant MEV infrastructure of Solana, whose validator client, bundles, and ti
  • Jupiter Jupiter is Solana's dominant DEX aggregator and DeFi superapp, founded by the pseudonymous
  • Kelsier Ventures Kelsier Ventures is a Davis family run firm that presents itself publicly as a web3 ventur
  • KOL Explorer KOL Explorer is an anonymously operated Solana trading intelligence site that ranks key op
  • Kolscan Kolscan is a Solana wallet tracker that ranks the performance of prominent onchain traders
Category: Platforms
Last updated 2026-08-20